Issues to Consider in Backsourcing Services

Earlier in this series, we discussed the options available to the client when an outsourcing project is done.

Among those, transition the service back in-house poses as a challenge due to the lack of capacity and expertise of the in-house staff who may have not performed the service for quite a bit chunk of time.

You should review and follow the checklist of issues related to the decision to bring back the previously outsourced services to the internal team.

How many processes are outsourced?

To what extent have there been procedural changes in the process during the period of outsourcing?

What are the physical resource requirements (such as office space, computers, manuals etc.)?

What are the software requirements (such as licences for all applicable software and subscriptions to the appropriate material)?

What staffing levels and skills are needed to perform the work?

What are the support requirements for staff (such as HR, training etc.)?

Are any external agreements required in order to bring the work in-house (that is, what suppliers to the OSP need to be contacted such that the supply continues directly in-house, for example, actuarial certificates, SMSF audits etc.)?

This post has marked an end to the Odyssey Outsourcing Practice Management Series which aims to provide a big picture as well as the comprehensive understanding of the outsourcing of Australian accounting, taxation and bookkeeping compliance.